Paul Derby
Romanian helicopter manufacturer IAR says it will meet with representatives from Bell Helicopter and its own government next week to thrash out a financial solution which would allow licence production of the Bell AH-1RO Dracula - based on the AH-1W Super Cobra.
IAR delegates at the show say they are confident of ending the long-running wrangle, which has been blighted by funding problems, within two months.
They add that talks immediately after the show will centre on striking a balance between two currencies as a method of payment. Romania wants to split the money between US dollars and the local lei.
Bell officials say they are optimistic about concluding the deal, but cannot confirm next week's meeting.
Speaking at Farnborough, IAR president Neculai Banea says the meeting will look at the fine details of the funding mechanism: "This is seen as a very important strategic programme by the Romanian government and we are confident that we can go forward with this.
"Achieving the private ownership of IAR is also critical to the future of many businesses in Romania. It is not just about licence production of the AH-1. The deal includes manufacture of some parts for Bell's civil aircraft and work for other parts of Textron."
Contracts have been signed by the parties involved, with IAR saying the package is worth in the region of $1.45 billion. Firming up the agreement would see Bell acquire a 70% shareholding in IAR.
Substantial
The proposed deal foundered after the International Monetary Fund insisted on substantial defence cuts last year to stabilise Romania's ailing economy.
The Romanian armed forces want to team 96 licence-produced Dracula helicopters with 24 IAR330 Pumas, upgraded with the Anti-Tank Optronic Search and Combat System (SOCAT). This would bring the country up to its internationally agreed attack helicopter limit.
Source: Flight Daily News